With its share prices near 52 week highs, the odds of a MSFT stock split are heightened. While the dividend yield may not be especially appetizing, MSFT’s dividend has still quadrupled over the last 10 years. In spite of a significant rise in share prices since March 2020, MSFT still has significant upside potential according to a discounted cash flow analysis. Microsoft sells its products through distributors, OEMs, resellers, or directly through online stores, retailers, or digital marketplaces. Gaming support comes in the form of Xbox hardware and services and the Search feature developed through Bing adds to the company’s profitability. Customers depend on Microsoft consulting services to help them with the development, deployment, and management of their Microsoft server desktop software.
In addition, the company provides services via its Azure platform. Microsoft’s subsidiary, GitHub offers a platform for collaboration and code hosting for developers. The firm’s intelligent cloud segment licenses Windows Servers and SQL, Visual Studio, and related client access licenses (CALs). It also supports the works of, LinkedIn, OneDrive, and Dynamics 365, designed especially for small and medium business use. The company’s productivity and business processes division features products, such as Office, SharePoint, Microsoft Teams, Exchange, Office 365, and Skype.
Here’s a look under the hood at what Microsoft actually does.
The CEO of Microsoft is Satya Nadella, who took on the role on February 4, 2014. Some of Microsoft’s subsidiaries include GitHub, Skype Communications, and Yammer. It has an annual revenue of $143 billion. Where MSFT Has Been Informs Where It’s GoingĮstablished on Apin Albuquerque, New Mexico by Bill Gates and Paul Allen, the company is headquartered in Redmond, Washington.Īs of 2020, the company employed 163,000 employees. Rapid and sustained growth seem to be a part of Microsoft’s vernacular. If that should occur, research indicates that the share price will outperform the markets 3 years after the split.Īlso, given that the public embraces Microsoft products and services for computing, gaming, and cloud applications, the company’s revenues is projected to grow at a strong pace. With this supporting evidence and a Microsoft share price approaching $300, the odds of the stock splitting seem likely. According to MarketsAndMarkets, spending forecasts show a CAGR of 17.5%, which goes from almost $371.5 billion to approximately $832 billion in 2025. The market is expected to double in size from 2020 to 2025. MSFT revenues are likely to rise higher, delivering more profits, and margin to the company based on the growth of the cloud computing market as a whole. If you look at Microsoft’s financial history, the stock may be headed for a split sooner than analysts expect.
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